Core Viewpoint - The annual financial report of Weimob Group highlights the challenges faced by A-share fund managers when investing in Hong Kong stocks, particularly the mismatch between A-share pricing strategies and the realities of the Hong Kong market [1][12]. Financial Performance - Weimob Group reported a nearly 40% decline in revenue for the fiscal year 2024, with a net loss attributable to shareholders expanding by 127.96% to reach 1.728 billion RMB [2][3]. - The company's total losses over the past five years have exceeded 6.2 billion RMB [12]. Business Segments - Weimob Group's core revenue streams include high-margin e-commerce SaaS subscription services and lower-margin merchant solutions. The number of paid subscribers for the SaaS business fell by 34.7% to 62,924, leading to a 31.9% drop in subscription revenue to 919 million RMB [4]. - The merchant solutions segment faced significant pressure, with revenue plummeting by 52% to 421 million RMB due to reduced advertising revenue from major platform partners [4]. Fund Manager Strategies - A-share fund managers heavily invested in Weimob Group have seen their performance negatively impacted, as the stock's decline has offset gains from other high-performing stocks in their portfolios [6][7]. - Some fund managers, such as those from Guoshou Anbao, have recognized Weimob Group as a key holding, but the stock's poor performance has led to disappointing results for their funds [5][7]. Market Dynamics - The differences in market liquidity and trading mechanisms between A-share and Hong Kong markets have created challenges for A-share fund managers, who may lack the necessary experience to navigate the Hong Kong market effectively [12][13]. - The competitive landscape in the e-commerce sector, particularly the dominance of major internet giants in China, poses additional risks for Weimob Group, which has not benefited as expected from its association with Tencent's ecosystem [4][14]. Investment Logic - The initial investment logic for Weimob Group was based on its comparison to Shopify, a major player in the U.S. e-commerce SaaS market. However, the operational environment in China is significantly different, leading to challenges for Weimob Group [14].